Notice of Right to Cure Default – When Notice Need Be Provided
The Wisconsin Court of Appeals recently concluded that the notice of right to cure default procedures under the Wisconsin Consumer Act are not preempted by the National Bank Act. Given that conclusion, WBA Legal thought it was good time for a refresher of those sections of Wisconsin law. For more information about the recent Wisconsin Court of Appeals case, see last month’s edition of the WBA Compliance Journal.
The following is a summary of the scope of the Wisconsin Consumer Act (WCA or the Act), what is considered “default” under the Act due to nonpayment or nonperformance, what information need be included in a notice of right to cure default form, and steps involving a customer’s right to cure a default.
Wisconsin Consumer Act – Scope
First enacted in 1973 and amended in 1984, 1996, 1997, and 2006, the WCA is an area of law meant to provide consumer safeguards by placing limitations on charges and requires certain disclosures, including disclosures about the right to cure default. The following statute chapters make up the Act:
• Chapter 421: Consumer Transactions, General Provisions and Definitions
• Chapter 422: Consumer Credit Transactions
• Chapter 423: Consumer Approval Transaction and Other Consumer Rights
• Chapter 424: Consumer Transactions, Insurance
• Chapter 425: Consumer Transactions, Remedies and Penalties
In addition, the Wisconsin Department of Financial Institutions (DFI) has Administrative Code Chapter DFI-WCA which provides further interpretations of the WCA.
The WCA governs consumer loans and credit sales to individuals primarily for personal, family, or household purposes; where the amount financed is $25,000 or less; and the loan is not secured by a first lien real estate mortgage or equivalent security interest. The Act does not apply to business purpose loans, loans to organizations, consumer credit where the amount financed exceeds $25,000, loans secured by a first lien real estate mortgage or equivalent security interest, or to certain government loans (e.g., VA loans).
In 1997, the WCA was amended to generally exclude agricultural purpose loans from the Act with the exception of one provision which still applies. Pursuant to Wis. Stat. s. 422.210, a creditor is prohibited from charging a finance charge or fee for an agricultural credit transaction, unless the charge or fee is clearly disclosed in writing and agreed upon by the creditor and the customer. The term “agricultural purpose” means a purpose related to the production, harvest, exhibition, marketing, transportation, processing or manufacture of agricultural products by a person, other than an organization, which cultivates, plants, propagates or nurtures those agricultural products. The term includes agricultural, horticultural, viticultural and dairy products, livestock, wildlife, poultry, bees, forest products, fish and shellfish, and any products thereof, including processed and manufactured products, and any and all products raised or produced on farms and any processed or manufactured products thereof. See Wis. Stat. s. 421.301(4).
Special Focus
Default under WCA
Default is defined under the WCA. Under Wis. Stat. s. 425.103, default with respect to a consumer credit transaction can occur due to: (1) nonpayment of amounts required in accordance with the payment schedule of an agreement; or (2) as a result of nonperformance of an action otherwise agreed upon. The WCA further sets forth when creditors can consider a consumer credit transaction to be in default for either instance.
With respect to default based upon nonpayment, factors to consider include whether the credit transaction is closed-end or open-end, the timing of when payments are due, and the length of time a payment is outstanding. For nonpayment of amounts required by the terms of the agreement, default:
• For closed-end credit, where the interval between scheduled payments is two months or less is:
• To have outstanding an amount that exceeds one full payment which has remained unpaid for more than ten days after the due date; or
• The failure to pay the first or last payment within forty days of its due date.
• For closed-end credit, where the interval between scheduled payments is more than two months is:
• To have outstanding all or any part of a scheduled payment for more than sixty days after its due date.
• For closed-end, single payment transaction is:
• To have all or any part of the payment unpaid for more than forty days after its due date.
• For open-end credit, is:
• The failure to pay when due on two occasions within any twelve-month period.
When identifying outstanding amounts for purposes of determining default by nonpayment, the outstanding amounts may not include any delinquency or deferral charges and are to be computed by applying each payment first to the installment most delinquent and then to subsequent installments in the order they come due.
Default under the WCA due to a customer’s nonperformance means the breach of any covenant which materially impairs the condition, value, protection of or the bank’s rights in any collateral. Also, the breach of any covenant which materially impairs the customer’s ability to pay when due.
Lenders should know the terms of their WCA-governed credit agreements, including any covenant or agreement made by the customer. Knowing how default is incorporated within such agreements helps lenders better determine what actions result in default and how the bank has contracted for its enforcement of the terms. Many times, default provisions of a WCA-governed credit agreement include language which incorporates the timing, actions, and notice components of Chapter 425 notice of right to cure default provisions.
Notice of Right to Cure Default
If the bank believes the customer is in default based upon the above standards, a written notice of the alleged default is to be given, and where applicable, the customer is given a right to cure the default.
The notice given under Wis. Stat. s. 425.104 must contain the: name, address, and telephone number of the creditor; a brief identification of the consumer credit transaction; a statement of the nature of the alleged default; a clear statement of the total payment,
April 2025
Volume 30, Number 11
Wisconsin Bankers Association
4721 South Biltmore Lane, P.O. Box 8880, Madison, Wisconsin, 53708-8880
Wisconsin Bankers Association. All rights reserved. Reproduction by any means of the entire contents or any portion of this publication without prior written permission is strictly prohibited. This publication is intended to provide accurate information in regard to the subject matter covered as of the date of publication; however, the information does not constitute legal advice. If legal advice or other expert assistance is required, the services of a competent and professional person should be sought.
Special Focus
including an itemization of any delinquency charges, or other performance necessary to cure the alleged default; the exact date by which the amount must be paid or performance tendered; and the name, address, and telephone number of the person to whom any payment must be made, if other than the creditor.
If the consumer credit transaction involves multiple customers, one copy of the notice is sufficient if the customers reside in the same last known address at the time the notice is given and if the notice is addressed to all such customers. In all other instances, a separate notice must be sent to each consumer. A copy of the notice should also be sent to co-signers (e.g., guarantors, endorsers, etc.). When providing notice, the notice of the right to cure default is deemed to have been given on the date of the mailing. See Wis. Stat. s. 425.104.
Right to Cure Default
Generally speaking, the customer has the right to cure a default. The customer may cure the default as identified in the notice of right to cure default during a 15-day period after the notice was given. The customer may cure the default during the 15-day period by paying unpaid installments, without acceleration, plus any delinquency or deferral charges, and by tendering performance necessary to cure any other default.
The default is cured on the date of mailing or personal delivery of the amount due. For this reason, it is recommended that a bank wait a reasonable time after the 15-day cure period in the event the customer cured the default by mail on the 15th day. In accordance with Wis. Stats. s. 425.105(2), the act of curing a default restores to the customer the customer’s rights under the agreement as though no default had occurred.
Until the expiration of the 15-day cure period, the bank may not accelerate the obligation, may not commence any legal proceedings, and may not demand to take possession of any collateral, other than voluntary surrender. The steps for voluntary surrender are beyond the scope of this article and are not included in this discussion.
There are occasions when the right to cure a default does not exist and the notice of right to cure default is not required to be provided. In particular, under Wis. Stat. s. 425.105(3), a right to cure default does not exist and the notice of right to cure is not required if twice in the preceding twelve months: (a) the customer was in default on the same transaction or open-end credit plan; (b) the bank gave the notice of right to cure; and (c) the customer cured the previous default.
Conclusion
The sections of Chapter 425 regarding default, the notice of right to cure default, and the timing and procedures surrounding the cure of default are established procedures. However, occasional refreshers of the default cure requirements under the WCA are helpful for banks when reviewing collection practices. Before pursuing an action in court for enforcement of creditor rights under a consumer credit agreement, banks need to be sure to first review whether right to cure default provisions were met, as applicable. Failure to do so may result in the court dismissing bank’s claim due to the failure to comply with the right to cure default provisions under the WCA.
Wisconsin Statutes may be viewed at: https://docs.legis.wisconsin.gov/statutes/prefaces/toc
Wisconsin Administrative Code may be viewed at: https://docs.legis.wisconsin.gov/code/admin_code
Regulatory Spotlight
FRB Announces Final Approval of Information Collections.
The Board of Governors of the Federal Reserve System (FRB) announced final approval of an information collection titled, Report of Selected Assets and Liabilities of Domestically Chartered Commercial Banks and U.S. Branches and Agencies of Foreign Banks. The information collection is a balance sheet report that is collected as of each Wednesday from an authorized stratified sample of 850 domestically chartered commercial banks and U.S. branches and agencies of foreign banks. In November, FRB proposed to revise the information collection by allowing banks under $5 billion in total assets as of the previous June 30 Call Report the option of reporting one week per month with data as of the first Wednesday of the month. The revisions will be implemented as proposed. The revisions are effective 04/02/2025. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-03-27/pdf/2025-05233.pdf. Federal Register, Vol. 90, No. 58, 03/27/2025, 13863-13864.
FRB announced final approval of an information collection titled, Recordkeeping Requirements of Regulation H and Regulation K Associated with the Procedures for Monitoring Bank Secrecy Act (BSA) Compliance. Section 208.63 of FRB’s Regulation H, Membership of State Banking Institutions in the Federal Reserve System, requires state member banks to establish and maintain in writing procedures reasonably designed to ensure and monitor compliance with BSA and its implementing regulations. Sections 211.5(m)(1) and 211.24(j)(1) of FRB’s Regulation K, International Banking Operations, impose the same requirements on Edge and agreement corporations and, except for a federal branch or a federal agency or a state branch that is insured by the Federal Deposit Insurance Corporation, the U.S. branches, agencies, and representative offices of foreign banks operating in the United States. The notice may be viewed at: https:// www.govinfo.gov/content/pkg/FR-2025-04-02/pdf/2025-05648.pdf. Federal Register, Vol. 90, No. 62, 04/02/2025, 14441.
FRB announced final approval of an information collection titled, Registration of a Securities Holding Company. The information collection is used whenever a securities holding company elects to register to become subject to supervision by FRB pursuant to section 618 of the Dodd-Frank Act. The notice may be viewed at: https://www.govinfo.gov/content/ pkg/FR-2025-04-02/pdf/2025-05645.pdf. Federal Register, Vol. 90, No. 62, 04/02/2025, 14441-14442.
FRB announced final approval of an information collection titled, Recordkeeping Provisions Associated with the Guidance on Sound Incentive Compensation Policies. The interagency Guidance on Sound Incentive Compensation Policies assists banking organizations in designing and implementing incentive compensation arrangements that do not encourage imprudent risk-taking and that are consistent with the safety and soundness of the organization. The guidance contains voluntary recordkeeping activities. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-04-02/ pdf/2025-05646.pdf. Federal Register, Vol. 90, No. 62, 04/02/2025, 14444-14445.
FRB announced final approval of an information collection titled, Reporting and Recordkeeping Requirements Associated with Regulation W. The information collection comprises the reporting requirements of Regulation W that are found in sections 223.15(b)(4), 223.31(d)(4), 223.41(d)(2), and 223.43(b) and the recordkeeping requirements found in sections 223.42(f)(6) and 223.42(g)(3). The information collection is used to demonstrate compliance with sections 23A and 23B of the Federal Reserve Act and to request certain exemptions from FRB. The notice may be viewed at: https://www. govinfo.gov/content/pkg/FR-2025-04-02/pdf/2025-05649.pdf. Federal Register, Vol. 90, No. 62, 04/02/2025, 14445.
FRB Seeks Comment on Information Collections.
FRB seeks comment regarding an information collection titled, Notice Claiming Status as an Exempt Transfer Agent. Transfer agents, which are institutions that provide securities transfer, registration, monitoring, and other specified services on behalf of securities issuers, are generally subject to certain Securities and Exchange Commission (SEC) regulations. However, a transfer agent that is regulated by and registered with FRB (an FRB-regulated transfer agent) may request an exemption from those regulations if it transfers and processes a low volume of securities. The information collection is used in connection with a request of exemption. Comments are due 05/27/2025. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-03-27/pdf/2025-05234.pdf. Federal Register, Vol. 90, No. 58, 03/27/2025, 13860.
FRB seeks comment regarding an information collection titled, Selected Balance Sheet Items for Discount Window Borrowers. FRB proposes to revise the information collection by removing the reporting exemption for seasonal credit borrowers that report total securities, federal funds sold and resale agreements, total loans, total deposits, and total
assets weekly on the Weekly Report of Selected Assets and Liabilities of Domestically Chartered Commercial Banks and U.S. Branches and Agencies of Foreign Banks. Comments are due 05/27/2025. The notice may be viewed at: https:// www.govinfo.gov/content/pkg/FR-2025-03-27/pdf/2025-05231.pdf. Federal Register, Vol. 90, No. 58, 03/27/2025, 13861.
FRB seeks comment regarding an information collection titled, Request for Extension of Time to Dispose of Assets Acquired in Satisfaction of Debts Previously Contracted. The Bank Holding Company Act and FRB’s Regulation Y, Bank Holding Companies and Change in Bank Control, require a bank holding company (BHC) that, either through foreclosure or otherwise in the ordinary course of collecting a debt previously contracted (DPC), acquired voting securities of a bank or BHC or the securities or assets of a company engaged in a nonbanking activity, to seek prior FRB approval in order to retain ownership of those shares or assets for more than two years. No application form exists for a BHC to retain banking or nonbanking DPC property for more than two years. However, a BHC seeking an extension generally submits a letter to the appropriate Reserve Bank that states the relevant facts; discusses why the extension should be approved; provides other information such as the efforts made, to date, to effect divestiture (including reasons for any delay in the pace of divestiture); and includes financial and descriptive data with respect to the DPC assets as well as the sales price of any related divested assets. Comments are due 05/27/2025. The notice may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2025-03-27/pdf/2025-05236.pdf. Federal Register, Vol. 90, No. 58, 03/27/2025, 13861-13862.
FRB seeks comment regarding an information collection titled, Notice of Proposed Stock Redemption. The Bank Holding Company Act and FRB’s Regulation Y, Bank Holding Companies and Change in Bank Control, require a bank holding company (BHC), under certain circumstances, to seek the prior approval of FRB before purchasing or redeeming its equity securities. Due to the limited information that a BHC must provide in connection with any such request, there is no required reporting form, and each request for prior approval is generally filed 30 days before the proposed stock purchase or redemption as a notification with the Reserve Bank that has direct supervisory responsibility for the requesting BHC. FRB uses the information provided in the redemption notice to supervise BHCs. Comments are due 05/27/2025. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-03-27/pdf/2025-05232.pdf. Federal Register, Vol. 90, No. 58, 03/27/2025, 13862-13863.
FRB seeks comment regarding an information collection titled, Written Security Program for State Member Banks. The information collection arises from a recordkeeping requirement contained in section 208.61 of FRB’s Regulation H, Membership of State Banking Institutions in the Federal Reserve System, which requires each state member bank to develop and maintain a written security program for the bank’s main office and branches within 180 days of becoming a member of the Federal Reserve System. A written security program contains minimum standards needed to deter crimes against financial institutions and assist in the apprehension of perpetrators of such crimes. Comments are due 05/27/2025. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-03-27/pdf/2025-05235.pdf. Federal Register, Vol. 90, No. 58, 03/27/2025, 13864-13865.
FRB seeks comment regarding an information collection titled, Investment in Bank Premises Notification. The Federal Reserve Act requires a state member bank, under certain circumstances, to seek prior approval from FRB before making an investment in bank premises or the securities of a corporation holding its bank premises. FRB uses the information collection to determine whether to object to the proposed investment. Comments are due 06/02/2025. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-04-02/pdf/2025-05644.pdf. Federal Register, Vol. 90, No. 62, 04/02/2025, 14442-14443.
FRB seeks comment regarding an information collection titled, Recordkeeping and Disclosure Requirements Associated with Regulation H (Loans Secured by Real Estate Located in Flood Hazard Areas). The federal flood insurance statutes and Regulation H, Membership of State Banking Institutions in the Federal Reserve System, provide that a lender shall not make, increase, extend, or renew a loan secured by a building or mobile home located in a special flood hazard area unless the secured property is covered by flood insurance for the term of the loan. Regulation H generally requires state member banks to retain certain flood hazard documentation and to notify borrowers and servicers regarding properties in flood hazard areas and requirements related to flood insurance. State member banks also must notify the Federal Emergency Management Agency of the identity of, and any change in, the servicer of a loan secured by improved property in a special flood hazard area. The information collection requirements under the flood hazard provisions of Regulation H are triggered by specific events in the lending process. Comments are due 06/02/2025. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-04-02/pdf/2025-05647.pdf. Federal Register, Vol. 90, No. 62, 04/02/2025, 14443-14444.
Regulatory Spotlight
FDIC Withdraws Three Proposed Rules.
The Federal Deposit Insurance Corporation (FDIC) announced the withdrawal of proposed rules related to brokered deposit restrictions, corporate governance and risk management, and the Change in Bank Control Act. If FDIC decides to pursue future regulatory action in any of the areas, FDIC will issue a new proposed rule. The FDIC has withdrawn the proposed rules published in the Federal Register on 08/23/2024, at 89 FR 68244; on 10/11/2023, at 88 FR 70391; and on 08/19/2024, at 89 FR 67002. The withdrawal is effective 03/14/2025. The notice may be viewed at: https://www. govinfo.gov/content/pkg/FR-2025-03-14/pdf/2025-04088.pdf. Federal Register, Vol. 90, No. 49, 03/17/2025, 12115.
FDIC Announces Termination of Receiverships.
FDIC, as Receiver for each of listed insured depository institutions, was charged with the duty of winding up the affairs of the former institutions and liquidating all related assets. The Receiver has fulfilled its obligations and made all dividend distributions required by law. The Receiver has further irrevocably authorized and appointed FDIC Corporate as its attorney-in-fact to execute and file any and all documents that may be required to be executed by the Receiver that FDIC-Corporate, in its sole discretion, deems necessary, including but not limited to releases, discharges, satisfactions, endorsements, assignments, and deeds. Effective on the termination dates listed in the notice, the Receiverships have been terminated, the Receiver has been discharged, and the Receiverships have ceased to exist as legal entities. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-04-04/pdf/2025-05841.pdf. Federal Register, Vol. 90, No. 64, 04/04/2025, 14839-14840.
FDIC Seeks Comment on Information Collections.
FDIC seeks comment regarding several information collections, including Acquisition Services Information Requirements, Notices Required of Government Securities Dealers or Brokers (Insured State Nonmember Banks), Activities and Investments of Insured Depository Institutions, Privacy of Consumer Financial Information, and Registration of Mortgage Loan Originators. Each information collection is further explained in the notice. Comments are due 04/24/2025. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-03-25/pdf/2025-04975.pdf. Federal Register, Vol. 90, No. 56, 03/25/2025, 13596-13600.
FDIC seeks comment regarding two information collections, Procedures for Monitoring Bank Protection Act Compliance and Ombudsman Post-Examination Surveys. Both information collections are further explained in the notice. Comments are due 05/27/2025. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-03-25/pdf/202504994.pdf. Federal Register, Vol. 90, No. 56, 03/25/2025, 13600-13602.
OCC Seeks Comment on Information Collections.
The Office of the Comptroller of the Currency (OCC) seeks comment regarding an information collection titled, Interagency Statement on Complex Structured Finance Transactions. The Interagency Statement describes the types of internal controls and risk management procedures that the agencies (OCC, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, and the Securities and Exchange Commission) consider particularly effective in helping financial institutions identify and address the reputational, legal, and other risks associated with complex structured finance transactions. The internal controls and risk management procedures form the basis of the information collection. Comments are due 05/12/2025. The notice may be viewed at: https://www.govinfo.gov/content/ pkg/FR-2025-03-13/pdf/2025-04009.pdf. Federal Register, Vol. 90, No. 48, 03/13/2025, 12032-12033.
OCC seeks comment regarding an information collection titled, Leasing. Under 12 CFR 23.4(c), national banks must liquidate or re-lease property that is no longer subject to lease (off-lease property) as soon as practicable and not later than five years from the date the national bank acquires the legal right to possess or control the property. If a national bank wishes to extend the five-year holding period for up to an additional five years, it must obtain OCC approval. Section 23.4(c) requires a national bank seeking an extension to provide a clearly convincing demonstration as to why any additional holding period is necessary. In addition, a national bank must value off-lease property at the lower of current fair market value or book value promptly after the property becomes off-lease property. Twelve U.S.C. 24 contains two separate provisions authorizing a national bank to acquire personal property for purposes of lease financing. The information collection is required to establish that the national bank is complying with the limitations and requirements
Regulatory Spotlight
applicable to the two separate types of leases. Comments are due 05/30/2025. The notice may be viewed at: https:// www.govinfo.gov/content/pkg/FR-2025-03-31/pdf/2025-05497.pdf. Federal Register, Vol. 90, No. 60, 03/31/2025, 14320-14321.
HUD Publishes Regulatory Waiver Requests Granted for Third Quarter Calendar Year 2024.
Section 106 of the Department of Housing and Urban Development Reform Act (the HUD Reform Act) requires HUD to publish quarterly Federal Register notices of all regulatory waivers that HUD has approved. Each notice covers the quarterly period since the previous Federal Register notice. The notice contains a list of regulatory waivers granted by HUD during the period beginning 07/01/2024, and ending 09/30/2024. The notice may be viewed at: https://www. govinfo.gov/content/pkg/FR-2025-03-28/pdf/2025-05332.pdf. Federal Register, Vol. 90, No. 59, 03/28/2025, 14149-14157.
HUD Announces Termination of Direct Endorsement Approvals.
HUD issued a notice that advises of the cause and effect of termination of Direct Endorsement (DE) approval taken by HUD’s Federal Housing Administration (FHA) against HUD-approved mortgagees through the FHA Credit Watch Termination Initiative. The notice includes a list of mortgagees that have had their DE Approval terminated. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-04-04/pdf/2025-05861.pdf. Federal Register, Vol. 90, No. 64, 04/04/2025, 14849.
FEMA Issues Final Flood Hazard Determinations.
The Federal Emergency Management Agency (FEMA) announced final hazard determinations, which may include additions or modifications of Base Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, or regulatory floodways on the Flood Insurance Rate Maps (FIRMs) and where applicable, in the supporting Flood Insurance Study (FIS) reports have been made final for communities in the state of Illinois. The FIRM and FIS report are the basis of the floodplain management measures that a community is required either to adopt or to show evidence of having in effect in order to qualify or remain qualified for participation in FEMA’s National Flood Insurance Program (NFIP). The date of 08/19/2025, has been established for the FIRM and, where applicable, the supporting FIS report showing the new or modified flood hazard information for each community. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-04-04/pdf/2025-05869.pdf. Federal Register, Vol. 90, No. 64, 04/04/2025, 14843-14845.
FEMA Issues Final Changes in Flood Hazard Determinations.
New or modified Base (1-percent annual chance) Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, and/or regulatory floodways (hereinafter referred to as flood hazard determinations) as shown on the indicated Letter of Map Revision (LOMR) have been made final for communities in the state of Illinois, as listed in the table in the notice. Each LOMR revises the Flood Insurance Rate Maps (FIRMs), and in some cases the Flood Insurance Study (FIS) reports, currently in effect for the listed communities. Each LOMR was finalized as indicated in the table in the notice. The final notice may be viewed at: https://www.govinfo.gov/content/pkg/ FR-2025-03-12/pdf/2025-03891.pdf. Federal Register, Vol. 90, No. 47, 03/12/2025, 11849-11951.
New or modified Base (1-percent annual chance) Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, and/or regulatory floodways (hereinafter referred to as flood hazard determinations) as shown on the indicated Letter of Map Revision (LOMR) have been made final for communities in the states of Illinois, Indiana, Minnesota, and Wisconsin, as listed in the table in the notice. Each LOMR revises the Flood Insurance Rate Maps (FIRMs), and in some cases the Flood Insurance Study (FIS) reports, currently in effect for the listed communities. Each LOMR was finalized as indicated in the table in the notice. The final notice may be viewed at: https:// www.govinfo.gov/content/pkg/FR-2025-03-26/pdf/2025-05124.pdf. Federal Register, Vol. 90, No. 57, 03/26/2025, 13765-13767.
Special Focus
Regulatory Spotlight
FEMA Announces Changes in Flood Hazard Determinations.
FEMA issued a notice which lists communities in the state of Minnesota, where the addition or modification of Base Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, or the regulatory floodway (hereinafter referred to as flood hazard determinations), as shown on the Flood Insurance Rate Maps (FIRMs), and where applicable, in the supporting Flood Insurance Study (FIS) reports is appropriate because of new scientific or technical data. The FIRM, and where applicable, portions of the FIS report, have been revised to reflect the flood hazard determinations through issuance of a Letter of Map Revision (LOMR), in accordance with federal regulations. The flood hazard determinations will be finalized on the dates listed in the table in the notice and revise the FIRM panels and FIS report in effect prior to the determination for the listed communities. From the date of the second publication of notification of the changes in a newspaper of local circulation, any person has 90 days in which to request through the community that the Deputy Associate Administrator for Insurance and Mitigation reconsider the changes. The flood hazard determination information may be changed during the 90-day period. The notice may be viewed at: https://www. govinfo.gov/content/pkg/FR-2025-03-12/pdf/2025-03892.pdf. Federal Register, Vol. 90, No. 47, 03/12/2025, 11844-11846.
FEMA issued a notice which lists communities in the state of Illinois, where the addition or modification of Base Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, or the regulatory floodway (hereinafter referred to as flood hazard determinations), as shown on the Flood Insurance Rate Maps (FIRMs), and where applicable, in the supporting Flood Insurance Study (FIS) reports is appropriate because of new scientific or technical data. The FIRM, and where applicable, portions of the FIS report, have been revised to reflect the flood hazard determinations through issuance of a Letter of Map Revision (LOMR), in accordance with federal regulations. The flood hazard determinations will be finalized on the dates listed in the table in the notice and revise the FIRM panels and FIS report in effect prior to the determination for the listed communities. From the date of the second publication of notification of the changes in a newspaper of local circulation, any person has 90 days in which to request through the community that the Deputy Associate Administrator for Insurance and Mitigation reconsider the changes. The flood hazard determination information may be changed during the 90-day period. The notice may be viewed at: https://www. govinfo.gov/content/pkg/FR-2025-03-12/pdf/2025-03891.pdf. Federal Register, Vol. 90, No. 47, 03/12/2025, 11849-11851.
FEMA issued a notice which lists communities in the states of Illinois and Michigan, where the addition or modification of Base Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, or the regulatory floodway (hereinafter referred to as flood hazard determinations), as shown on the Flood Insurance Rate Maps (FIRMs), and where applicable, in the supporting Flood Insurance Study (FIS) reports is appropriate because of new scientific or technical data. The FIRM, and where applicable, portions of the FIS report, have been revised to reflect the flood hazard determinations through issuance of a Letter of Map Revision (LOMR), in accordance with federal regulations. The flood hazard determinations will be finalized on the dates listed in the table in the notice and revise the FIRM panels and FIS report in effect prior to the determination for the listed communities. From the date of the second publication of notification of the changes in a newspaper of local circulation, any person has 90 days in which to request through the community that the Deputy Associate Administrator for Insurance and Mitigation reconsider the changes. The flood hazard determination information may be changed during the 90-day period. The notice may be viewed at: https://www. govinfo.gov/content/pkg/FR-2025-03-26/pdf/2025-05121.pdf. Federal Register, Vol. 90, No. 57, 03/26/2025, 13761-13765.
FEMA Issues Proposed Flood Hazard Determinations.
Comments are requested regarding proposed flood hazard determinations, which may include additions or modifications of any Base Flood Elevation (BFE), base flood depth, Special Flood Hazard Area (SFHA) boundary or zone designation, or regulatory floodway on the Flood Insurance Rate Maps (FIRMs), and where applicable, in the supporting Flood Insurance Study (FIS) reports for communities in the state of Michigan, as listed in the table in the notice. The FIRM and FIS report are the basis of the floodplain management measures that the community is required either to adopt or to show evidence of having in effect in order to qualify or remain qualified for participation in the National Flood Insurance Program (NFIP). Comments are due 06/24/2025. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-03-26/ pdf/2025-05126.pdf. Federal Register, Vol. 90, No. 57, 03/26/2025, 16769-13770.
Special Focus Regulatory Spotlight
FEMA Corrects Proposed Flood Hazard Determination for Michigan.
On 02/24/2025, FEMA published in the Federal Register a proposed flood hazard determination notice that contained an erroneous table. This notice provides corrections to that table to be used in lieu of the erroneous information. The corrected table represents the proposed flood hazard determinations and communities affected for Berrien County, Michigan. Comments are due 06/24/2025. The correction may be viewed at: https://www.govinfo.gov/content/pkg/FR2025-03-26/pdf/2025-05122.pdf. Federal Register, Vol. 90, No. 57, 03/26/2025, 13770-13771.
FinCEN Issues Interim Final Rule to Revise BOI Reporting Rule.
The Financial Crimes Enforcement Network (FinCEN) issued an interim final rule to narrow the existing beneficial ownership information (BOI) reporting requirements under the Corporate Transparency Act (CTA) to require only entities previously defined as “foreign reporting companies” to report BOI. Under the interim final rule, entities previously defined as “domestic reporting companies” are exempted from the reporting requirements and do not have to report BOI to FinCEN, or update or correct BOI previously reported to FinCEN. With limited exceptions, the interim final rule does not change the existing requirement for foreign reporting companies to file BOI reports, but it extends the deadline to file initial BOI reports, and to update or correct previously filed BOI reports, to 30 days from the date of publication of the interim final rule to give foreign reporting companies additional time to comply. However, the interim final rule exempts foreign reporting companies from having to report the BOI of any U.S. persons who are beneficial owners of the foreign reporting company and exempts U.S. persons from having to provide such information to any foreign reporting company for which they are a beneficial owner. FinCEN will assess the exemptions, as appropriate, in light of comments received and intends to issue a final rule this year. The interim final rule is effective 03/26/2025. Comments are due 05/27/2025 The interim final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-03-26/pdf/2025-05199.pdf. Federal Register, Vol. 90, No. 57, 03/26/2024, 13688-13697.
FinCEN Issues Record Retention Order of Certain MSBs.
FinCEN issued a Geographic Targeting Order to require certain money services businesses (MSBs) along the southwest border of the United States to report and retain records of transactions in currency of more than $200 but not more than $10,000, and to verify the identity of persons presenting such transactions. The action is effective 04/14/2025. The order may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-03-14/pdf/2025-04099.pdf. Federal Register, Vol. 90, No. 49, 03/14/2025, 12106-12108.
FinCEN Seeks Comment on BSA-Related Information Collections.
FinCEN seeks comment regarding information collection requirements found in Bank Secrecy Act (BSA) regulations. Specifically, the regulations require that upon receiving a written request from FinCEN, a bank located within the United States that maintains a correspondent account for a specified foreign bank must ask the foreign bank, and report to FinCEN, about transactions or other financial services provided by that foreign bank to Iranian linked financial institutions designated under the International Emergency Economic Powers Act (IEEPA) and Islamic Revolutionary Guard Corps (IRGC)-linked persons designated under IEEPA. Comments are due 05/27/2025. The notice may be viewed at: https:// www.govinfo.gov/content/pkg/FR-2025-03-28/pdf/2025-05349.pdf. Federal Register, Vol. 90, No. 59, 03/28/2025, 14183-14189.
IRS Issues Technical Corrections to Nonrecognition of Gain or Loss Proposal.
The Internal Revenue Service (IRS) issued technical corrections to a proposed rule published in the Federal Register on 01/16/2025, regarding proposed regulations on certain matters relating to corporate separations, incorporations, and reorganizations qualifying, in whole or in part, for nonrecognition of gain or loss. IRS proposed twenty-nine technical corrections, as listed in the notice. The corrections may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-0324/pdf/2025-04757.pdf. Federal Register, Vol. 90, No. 55, 03/24/2025, 13427-13428.
Special Focus Regulatory Spotlight
IRS Seeks Comment on Information Collections.
IRS seeks comment regarding an information collection titled, Allocation of Expenses by Real Estate Mortgage Investment Conduits (REMIC). Treasury Regulations section 1.67-3(f)(4)(ii) requires single-class REMICs to provide certain Internal Revenue Code (IRC) section 67 information to a person holding a regular interest in the single-class REMIC pursuant to section 1.6049-7(e). Treasury Regulations section 1.6049-7(e) requires the REMIC to provide certain information to brokers and middlemen who request the information to complete information returns. Treasury Regulations Section 1.6049-7(f)(7) requires brokers and middlemen to furnish certain information to corporations, noncalendar year taxpayers, and other specified persons who request the information and for whom the broker or middleman holds as a nominee a REMIC regular interest or a collateralized debt obligation. Comments are due 05/27/2025. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-03-26/pdf/2025-05127.pdf. Federal Register, Vol. 90, No. 57, 03/26/2025, 13825.
IRS seeks comment regarding an information collection titled, Estate (and Generation-Skipping Transfer) Tax Return, and Related Forms. The executor of a decedent’s estate uses Form 706, and related returns, to figure the estate tax imposed by chapter 11 of the Internal Revenue Code. The tax is levied on the entire taxable estate and not just on the share received by a particular beneficiary. Form 706 is also used to figure the generation-skipping transfer (GST) tax imposed by chapter 13 on direct skips. IRS is redesigning the United States Estate (and Generation-Skipping Transfer) Tax Return and separating the schedule into separate documents. Currently, there are 29 forms, used by executors pertaining to the decedent’s estate tax reporting requirements as listed in the notice. Comments are due 06/02/2025. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-04-02/pdf/2025-05581.pdf. Federal Register, Vol. 90, No. 62, 04/02/2025, 14520-14521.
SBA Issues Peg Rate.
The Small Business Administration (SBA) publishes an interest rate called the Optional Peg Rate on a quarterly basis. The rate is a weighted average cost of money to the Government for maturities similar to the average SBA direct loan. The rate may be used as a base rate for guaranteed fluctuating interest rate SBA loans. The rate will be 4.75 percent for the April-June quarter of fiscal year 2025. Pursuant to 13 CFR 120.921(b), the maximum legal interest rate for any thirdparty lender’s commercial loan which funds any portion of the cost of a 504 project shall be 6% over the New York Prime rate or, if that exceeds the maximum interest rate permitted by the constitution or laws of a given State, the maximum interest rate will be the rate permitted by the constitution or laws of the given State. The notice may be viewed at: https:// www.govinfo.gov/content/pkg/FR-2025-03-25/pdf/2025-04987.pdf. Federal Register, Vol. 90, No. 56, 03/25/2025, 13652.
SBA Announces Delegation of Authority.
SBA announced its delegations of authority to SBA’s Office of Disaster Recovery and Resilience (ODR&R) for activities related to declaring and amending disaster declarations and overseeing and managing its ODR&R offices and divisions. ODR&R leads SBA’s efforts to connect disaster survivors with lending and other assistance to help them prepare for and recover from a declared disaster. The delegated authorities are listed in the notice. The notice may be viewed at: https:// www.govinfo.gov/content/pkg/FR-2025-04-07/pdf/2025-05937.pdf. Federal Register, Vol. 90, No. 65, 04/07/2025, 15030.
SBA Seeks Comment on Information Collections.
SBA seeks comment regarding an information collection titled, Paycheck Protection Loan Program (PPP) Borrower Information Form and Lender’s Application for Loan Guaranty. The information collection is used for the PPP Loan Program. The approval is set to expire 03/31/2025. SBA has requested approval of an extension of the information collection for three years. Although SBA’s PPP program authority has expired, the information collection is still needed for the following reasons: (1) PPP borrowers may apply for forgiveness of their loans up to five years after SBA issued a loan number, which may be as late as 2026; (2) SBA may review a PPP loan at any time; and (3) pending litigation may require the collection of information. Comments are due 05/19/2025. The notice may be viewed at: https://www.govinfo. gov/content/pkg/FR-2025-03-18/pdf/2025-04405.pdf. Federal Register, Vol. 90, No. 51, 03/18/2025, 12630-12631.
Special Focus Regulatory Spotlight
SBA seeks comment regarding an information collection titled, Restaurant Revitalization Fund Program Post Award Report. The SBA received funds under the American Rescue Plan Act to provide direct funds to eating and drinking establishments that meet certain conditions under the Restaurant Revitalization Fund program. The report is used in connection with the program. Comments are due 04/17/2025. The notice may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2025-03-18/pdf/2025-04314.pdf. Federal Register, Vol. 90, No. 51, 03/18/2025, 12631-12632.
SBA seeks comment regarding an information collection titled, Paycheck Protection Program (PPP) Affiliation Worksheet. The information collection is used for the PPP Loan Program. The approval is set to expire 03/31/2025. SBA has requested approval of an extension of the information collection for three years. Although SBA’s PPP program authority has expired, the information collection is still needed for the following reasons: (1) PPP borrowers may apply for forgiveness of their loans up to five years after SBA issued a loan number, which may be as late as 2026; and (2) SBA may review a PPP loan at any time; and (3) pending litigation may require the collection of information. Comments are due 05/19/2025. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-03-18/pdf/2025-04408. pdf. Federal Register, Vol. 90, No. 51, 03/18/2025, 12632.
SBA seeks comment regarding an information collection titled, SBA 7(a) Borrower Information Form. SBA has proposed to update the form to conform to Administration priorities, Executive Orders, and program updates, including but not limited to adding a collection for applicants who operate under a franchise agreement to enter the name and the SBA Franchise Identifier Code for the franchise. SBA will provide a link to the SBA Franchise Directory so the applicant may easily locate the appropriate Franchise Identifier Code. Additional revisions are listed in the notice. Comments are due 05/30/2025. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-03-31/pdf/2025-05441.pdf. Federal Register, Vol. 90, No. 60, 03/31/2025, 14315-14316.
SBA seeks comment regarding an information collection titled, SBA 504 Borrower Information Form. SBA uses the form to review the eligibility of the small business concerns (SBCs) for SBA financial assistance, the creditworthiness and repayment ability of the SBC, and the terms and conditions of the 504 loan for which the SBC is applying. SBA is updating the information collection to comply with Administration priorities and Program updates as well as recent Executive Orders including 14159, Protecting the American People Against Invasion, issued 01/20/2025, and SBA Policy Notice 5000-865754, Policy Updates to Comply with Executive Order 14159 Regarding Citizenship Requirements for Obtaining 7(a) and 504 Loans, published 03/07/2025, and to improve the instructional guidance in the form. Comments are due 06/09/2025. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-04-08/pdf/202506012.pdf. Federal Register, Vol. 90, No. 66, 04/08/2025, 15195-15196.
FSA Issues NOFA for Emergency Commodity Assistance Program.
The Farm Service Agency (FSA) issued a notice of funds available (NOFA) for the Emergency Commodity Assistance Program (ECAP), which will provide economic assistance payments to eligible producers of eligible commodities for the 2024 crop year. ECAP is a new FSA program authorized by the American Relief Act, 2025. The NOFA also announces the eligibility (commodities, acres, producers, and losses), payment calculations, payment limitations, and how to apply for ECAP. See the NOFA for application details and deadlines. The NOFA may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2025-03-19/pdf/2025-04604.pdf. Federal Register, Vol. 90, No. 52, 03/19/2025, 12696-12705.
Agencies Remove References in Program Funding Opportunities
Criteria.
The Rural Business Cooperative Service (RBC), Rural Utilities Service (RUS), and Rural Housing Service (RHS) (collectively the agencies) announced amendments to 14 program funding opportunities to remove references to the prior Administration’s key priorities and DEI (diversity, equity, and inclusion) related scoring criteria to bring them into compliance with the Executive Order, Ending Radical and Wasteful Government DEI Programs and Preferencing, issued 01/20/2025. The notice also confirms that previous Administration key priorities and discretionary points will not be considered during application scoring and makes clear that applicants who already have applied need not reapply. The notice also corrects the Rural Energy for America funding notice to include an omitted funding source. The notice is applicable 03/25/2025. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-03-25/pdf/202504988.pdf. Federal Register, Vol. 90, No. 56, 03/25/25, 13580-13581.
Special Focus Regulatory Spotlight
The Rural Housing Service (RHS) announced amendments to two program funding opportunities to remove references to the prior Administration’s key priorities and DEI (diversity, equity, and inclusion) related scoring criteria to bring them into compliance with the Executive Order, Ending Radical and Wasteful Government DEI Programs and Preferencing, issued 01/20/2025. The notice also confirms that previous Administration key priorities will not be considered during application scoring and makes clear that applicants who already have applied need not reapply. The notice is applicable 04/02/2025 The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-04-02/pdf/2025-05663.pdf. Federal Register, Vol. 90, No. 62, 04/02/2025, 14431.
CFTC Seeks Comment on Swap Execution Facilities Information Collection.
The Commodity Futures Trading Commission (CFTC) seek comment regarding an information collection titled, Core Principles and Other Requirements for Swap Execution Facilities (SEFs). Section 5h to the Commodity Exchange Act sets forth the requirements concerning the registration and operation of SEFs, which CFTC has implemented in part 37 of its regulations. The information collection is needed for CFTC to ensure that SEFs comply with the requirements. Among other requirements, part 37 imposes SEF registration requirements for a trading platform or system, obligates SEFs to provide transaction confirmations to swap counterparties, and requires SEFs to comply with 15 core principles. Comments are due 04/10/2025. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-03-11/ pdf/2025-03820.pdf. Federal Register, Vol. 90, No. 46, 03/11/2025, 11728-11729.
SEC Amends Delegation of Authority Involving Division of Enforcement.
The Securities and Exchange Commission (SEC) issued a final rule to amend its regulations with respect to the delegations of authority to the Director of the Division of Enforcement to eliminate the delegation of authority to issue formal orders of investigation. Formal orders designate the enforcement staff authorized to issue subpoenas in connection with investigations under the Federal securities laws. The amendment is the result of SEC’s experience with its nonpublic investigations. The amendment is intended to increase effectiveness by more closely aligning SEC’s use of its investigative resources with SEC priorities. The final rule is effective 03/14/2025. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-03-14/pdf/2025-04064.pdf. Federal Register, Vol. 90, No. 49, 03/14/2025, 12105-12106.
SEC Extends Compliance Dates for Investment Company Name Rule.
SEC issued a final rule to extend the compliance dates for the amendments to the rule under the Investment Company Act that addresses certain broad categories of investment company names that are likely to mislead investors about the investment company’s investments and risks, as well as related enhanced prospectus disclosure requirements and Form N-PORT reporting requirements, that were adopted 09/20/2023. The compliance date is extended from 12/11/2025, to 06/11/2026, for fund groups with net assets of $1 billion or more as of the end of their most recent fiscal year; and from 06/11/2026, to 12/11/2026, for fund groups with less than $1 billion in net assets as of the end of their most recent fiscal year. In addition, SEC is modifying the operation of the compliance dates to allow for compliance based on the timing of certain annual disclosure and reporting obligations that are tied to the fund’s fiscal year-end. The final rule is effective 03/20/2025. The effective date for the amendments to 17 CFR 270.35d-1 (rule 35d-1) under the Investment Company Act and related prospectus disclosure and reporting requirements, as adopted 09/20/2023, remains 12/11/2023. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-03-20/pdf/2025-04705.pdf. Federal Register, Vol. 90, No. 53, 03/20/2025, 13076-13080.
Compliance Notes
OCC issued Bulletin 2025-6 to inform banks of the appropriate names and addresses for notices required by the CRA and ECOA, and for posters required by the Fair Housing Act. Banks should make the appropriate changes to their notices and posters, if necessary, within 90 days of the Bulletin’s date of issuance. The Bulletin may be viewed at: https:// www.occ.gov/news-issuances/bulletins/2025/bulletin-2025-6.html
FRB, FDIC, and OCC jointly announced, in light of recent litigation, the intent to issue a proposal to rescind the CRA final rule issued in October 2023. The proposal also would reinstate the CRA framework that existed prior to the 2023 final rule, which currently remains in effect. The announcement may be viewed at: https://occ.gov/news-issuances/ bulletins/2025/bulletin-2025-5.html
The ABA Banking Journal has reported that the CFPB said in a court filing that its leadership has directed staff to initiate a new rulemaking to implement section 1071 of the Dodd-Frank Act and plans to release a proposal to potentially replace or change its current rule. The report may be viewed at: https://www.americanbanker.com/news/cfpb-willrewrite-small-business-lending-rule
OCC is to no longer examine its regulated institutions for reputation risk and is removing references to reputation risk from its Comptroller’s Handbook booklets and guidance issuances. The removal of references to reputation risk from OCC handbooks and guidance issuances does not alter OCC’s expectation that banks remain diligent and adhere to prudent risk management practices across all other risk areas. OCC expects to complete its efforts to update its public documents in the coming weeks. The announcement may be viewed at: https://occ.gov/news-issuances/newsreleases/2025/nr-occ-2025-21.html
FDIC has provided new guidance for institutions engaging or seeking to engage in crypto-related activities. FDIC affirmed that FDIC-supervised institutions may engage in permissible activities, including activities involving new and emerging technologies such as crypto-assets and digital assets, provided that the banks adequately manage the associated risks. FDIC expects that FDIC-supervised institutions conduct all activities in a safe and sound manner and consistent with all applicable laws and regulations. FDIC also rescinded FIL-16-2022 which had required prior notification requirements specific to crypto-related activities. The new guidance may be viewed at: https://www.fdic.gov/ news/financial-institution-letters/2025/fdic-clarifies-process-banks-engage-crypto-related
HMDA Modified LAR data for 2024 are now available on FFIEC’s HMDA Platform for approximately 4,898 HMDA filers. The data may be viewed at: https://ffiec.cfpb.gov/data-publication/modified-lar/2024
OCC announced the establishment of a new digitalization page on its website to help community banks meet their digitalization objectives. OCC refers to digitalization as the use of technology to change a business model, provide new revenue and value-producing opportunities, or automate business processes. New and emerging technologies are important tools for community banks to meet customer demand, increase revenue, improve efficiencies, and remain competitive. The new page highlights relevant OCC rules, statements, and guidance that community banks can reference when pursuing their digitalization efforts. OCC plans to maintain the page by keeping it up to date as new resources become available. The announcement may be viewed at: https://occ.gov/news-issuances/bulletins/2025/bulletin-2025-3. html
Effective 03/24/2025, SBA has restored lender fees to its 7(a) loan program. Over the coming weeks, SBA will announce additional changes to safeguard the future of the 7(a) loan program to restore its zero-subsidy status and ensure it remains a reliable resource for empowering small business growth and formation. The announcement may be viewed at: https://www.sba.gov/article/2025/03/27/sba-initiates-actions-reverse-biden-era-mismanagement-core-7alending-program
SBA also announced new verification measures within its loan application process to strengthen protections against fraud and to ensure its programs only benefit eligible American small business owners. SBA loan programs will now include a citizenship verification provision, for which lenders are required to confirm that applicant businesses are not owned in whole or in part by an illegal alien. All SBA loan applications will include a process to verify the age of and date of birth. SBA’s date of birth verification process will automatically flag any applicant claiming to be younger than 18 or older than 115 years of age. The announcement may be viewed at: https://www.sba.gov/article/2025/04/10/sbahighlights-range-new-measures-stop-fraud
Compliance Notes
FTC recently warned business operators of websites that sell EIN filing and delivery services. Some are charging up to $300 per EIN. Some are also misrepresenting affiliation with a government agency. Business owners and others may obtain an EIN free of charge directly from the IRS. Customers seeking resources for obtaining an EIN should be referred directly to IRS for a free application or form instructions. IRS also has a helpful tool for obtaining an EIN. The FTC warning and IRS EIN Filing Tool may be viewed at the following, respectively: https://www.ftc.gov/news-events/news/pressreleases/2025/04/ftc-warns-operators-websites-charge-employer-identification-number-claim-affiliation-irs and https:// www.irs.gov/businesses/small-businesses-self-employed/get-an-employer-identification-number
SSA announced it is taking proactive steps to enhance the security of its services by implementing stronger identity verification procedures. In-person identity proofing for people unable to use their personal my Social Security account for certain services will be effective 04/14/2025. Individuals applying for Social Security Disability Insurance (SSDI), Medicare, or Supplemental Security Income (SSI) who cannot use a personal my Social Security account can complete their claim entirely over the telephone without the need to come into an SSA office. Individuals who cannot use their personal my Social Security account to apply for benefits will only need to prove their identity at a Social Security office if applying for Retirement, Survivors, or Auxiliary (Spouse or Child) benefits. SSA will enforce online digital identity proofing or in-person identity proofing for these cases. Individuals who do not or cannot use SSA’s online my Social Security services to change their direct deposit information for any benefit will need to visit a Social Security office to process the change or can call 1-800-772-1213 to schedule an in-person appointment.
SSA also announced it plans to implement the Department of Treasury’s Bureau of Fiscal Service’s payment integrity service called Account Verification Service (AVS). AVS provides instant bank verification services to proactively and timely prevent fraud associated with direct deposit change requests. The announcement may be viewed at: https://blog. ssa.gov/social-security-updates-recently-announced-identity-proofing-requirements/
President Trump has issued an Executive Order titled, Modernizing Payments to and From America’s Bank Account, which calls for a review and update of federal government disbursements practices to phase out, to the extent possible, disbursements by paper check. In particular, effective 09/30/2025, and to the extent permitted by law, the Treasury is to cease issuing paper checks for all Federal disbursements inclusive of intragovernmental payments, benefits payments, vendor payments, and tax refunds, except as specified in the order. Executive departments are to transition to EFT methods, including direct deposit, prepaid card accounts, and other digital payment options, and take all steps necessary to enroll recipients in EFT payments, unless exempt under the order. The Executive Order may be viewed at: https://www. whitehouse.gov/presidential-actions/2025/03/modernizing-payments-to-and-from-americas-bank-account/
This WBA member-exclusive program provides information in response to compliance questions.
2025 GSB SCHOOLS
INVEST IN CAREER DEVELOPMENT!
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WBA-Hosted Webinars – Two-hour webinars instructed with a particular focus on Wisconsin state law and rules.
